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Minister Sudirman Will Build More Mini Refineries

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27 November 2015 17:30 WIB

TEMPO.CO, Jakarta - Energy and Mineral Resources Ministry plans to make a special regulation on mini refinery. However, the regulation will have to wait until presidential decree on mini refinery development is signed. “Mini refinery is to refine oil in marginal working areas,” said Energy Minister Sudirman Said on Friday, November 27.

Mini refinery is needed for oil processing cost efficiency because marginal areas has small oil production. Mini refinery can conduct quick process for a fair amount.

Mini refinery facility will be developed in a vehicle so that after the oil is refined, products can be sent quickly.

The regulation will give incentive for refinery development. The incentive is a selling price that is determined based on costs for refinery process, supply and transportation.

Oil and gas director I Gusti Nyoman Wiratmaja said mini refinery development will be handled by private companies. There are currently eight working areas that need mini refineries. “This doesn’t need the state budget. Many companies have expressed interest,” said Wiratmaja.


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